Let the Fed buy Toxic assets, We’ll buy Silver and Gold
Posted on September 19, 2012 by JB Slear
The support for the US Dollar hasn’t been much since the Fed Chairman spoke, this morning is no different with the trade at 79.420 up 7.4 points and close to its high of 79.470, Treasuries are still being bought up across the board with money you and I will never see. Energy Sector continues to confound even the CFTC as they claim they are looking into Monday’s huge drop, we have a very easy solution to it but don’t expect anything more than jawboning. High-Frequency trading should be labeled what it was before computers took over everything, Churning!! Crude Oils trade is at $94.56 a barrel down 73 cents from the Comex close on Tuesday guiding the rest of the sector lower as well. Gold is amazingly higher on what is normally pullback time in precious metals, Gold’s trade stands at $1,776.10 up $4.90 after reaching a high of $1,781.80, Silver is doing just as well with the trade at $34.670 down 4.3 cents after reaching above $35 again. Copper told the story yesterday as it rallied from a hit and is continuing to climb as well today, this bodes well for all metals today. Grains are all trading positive, Livestock and Softs market are all in the negative. Paper Markets are flat to slightly higher as we ponder what the Federal Reserve is doing with all their newly created digi-dollars. A reasonable person would be buying something of value to offset inflation, but the Fed has decided to trade digi-dollars for these toxic mortgages from the banks to keep them afloat. Without this direct investment, these major banks would be gone and all the responsible players would be dividing up the charred remains on these institutions. No one has even spoken about the purchase price yet of these “inflated on the books” (marked to model) assets. Are they going to be purchased at the below value rates or are they going to be purchased at the highest value? Under Tarp, Bernanke bought all those toxic assets at 100% premium, no discount or haggling done at all, that only helped the bankers and their bonuses and no one else has benefited from this supposed bailout. Yes, a responsible person would be buying Silver and Gold by the wheel barrels, that’s why we’re here. Tomorrow is the Triple Witch Day and normally, it would be the day to buy because the lows are usually on this day. Keep an eye on the pricing and trust your insights and as always …. Stay Strong!!